4. Corporation makes two types of hiking boots-Xactive and the Pathbreaker. Data concerning these two product lines appear below $115.00 65.40 16.00 85.00 $ 53.00 $10.00 Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales 0 DLHs 1.6 DLHs 32,000 units 60,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data conceming manufacturing overhead and direct labor-hours for the upcoming year appear below $1,779,200 Estimated total manufacturing overhead Estimated total direct labor-hours 111,200 DLHs Required: 1. Compute the product margins for the Xactive and the Pathbreaker products under the company's tradional costing system. (Loss amounts should be indicated with a minus sign. Omit the "s Product margin 2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining costs and idle capacity costs) Estimated Expected Activity and Activity Measures Cost Xactive Pathbreaker Total Supporting direct labor (direct labor-hours) Batch setups (setups) 556,000 51,200 60,000 111,200 770 430 340 400,000 NA Product sustaining (number of products) NA NA Total manufacturing overhead cost $1,779,200 Compute the product margins for the Xactive and the Pathbreaker products under the activity-based costing system. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Product margin 3. Prepare a quantitative comparison of the traditional and a d cost assignments. (Do not Total manufacturing overhead cost $1,779,200 Compute the product margins for the Xactive and the Pathbreaker products under the activity-based intermediate calculations to 2 decimal places and final answers to the nearest dollar amount Omit the "s sign in your response.) PathbreakerTotM Product margin 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Do not ntermediate calculations. Round your percentage answers to one decimal place and round i Other answers to the nearest dollar amount. Omit the "S. &-%-signs in your response.) %of %of AmountTotal Tradtional Cost System Click to selec (Cick to select) Total cost assigned to products Activity-Based Costing System Direct costs (Cick to select) (Click to select) (Click to select) Indirect costs (Click to select) Total cost assigned to products Costs not assigned to products IClick to select) Total cost : FI FA F7 F2 F3 F5 0
